Schlumberger to cut global workforce by 9,000

Published 7:06 am, Thursday, January 15, 2015

A sign tower reaches toward the sky at the entrance to Schlumberger's Sugar Land campus.

A sign tower reaches toward the sky at the entrance to Schlumberger's Sugar Land campus.

Photo: Pat Sullivan)

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Schlumberger to cut global workforce by 9,000

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More job reductions hit the oil and gas industry Thursday with Schlumberger announcing company layoffs.

A spokesman for Schlumberger said the progress began in the fourth quarter of 2014 and when the process ends later this year, it is expected the workforce will be reduced by 9,000 globally. Those cutbacks will be across the organization. The spokesman said it was too early to tell how many of the company’s estimated 3,000 Permian Basin staff would be impacted, and he declined to make any assumptions. Workforce reduction is being done through a combination of attrition and layoffs.

“Reducing staff numbers and reviewing staffing requirements has become necessary in today’s lower commodity pricing environment and anticipated exploration and production spending in 2015, the spokesman said. He added that the retreat in crude oil prices was “something that happened so quickly and we have to address it.”

Big D Equipment President Don Tomlin confirmed in a phone interview with the Reporter-Telegram that his company was laying off workers in both Midland and Odessa, but declined to specify how many would be let go.

“Because the nature of our business is so closely related to the drilling process, we are among the first of service providers to be affected when the price falls,” Tomlin said in an email to the Reporter-Telegram. “Until the price stabilizes, we will continue to oversee budget cuts and personnel changes due to the reduced amount of work. We look forward to price stabilization and the price of crude going back up so that operators who have had to cut their budgets will start drilling again and utilize our services.”